USD Trading Outlook
AUD/USD Europe held the pair to a tight range as it hugged the 0.8070 area. NY applied bear pressure though as the greenback was generally firm on the back of a new trend low for EUR/USD and USD/JPY climbing back above 119.50. This saw AUD/USD slide in early NY and make a new trend low of 0.8033. The USD's climb subsided and AUD/USD bounced into Europe's close and sat near 0.8060 into the Fed minutes. The message was a bit mixed and price action reflected that. AUD/USD dived to 0.8036 then up to 0.8075 in a matter of minutes before reverting back to pre-minutes levels. The outlook remains bearish for this pair after the new trend low was hit as RSIs still weigh and yield spreads sit near recent tights. Option interest into 0.8000 is a big hurdle for now but it looks poised to be broken. Once cleared the market will target the 50% Fib of 0.4475-1.1081 which sits at 0.7928.
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